Quickburn7

So my dealer here in CA just gave me the lease pricing for the E63 and this seems pretty high for a car with this MSRP.

Msrp is $117,945
residual for 36 months 10k miles a year is 59%
MF is 0.00230 ( he is insisting that is his buy rate)

dealer wont take a $1 off sticker.

Monthly payment is $1984 including 9.5% use tax with $4200 total down

What do you all think?

2001_S15

That MF is better than I was quoted in the bay area. Lease rates are ridiculous. I thought Porsche was bad at 4.8%. My Audi is at 3.9%. BMW even lower. I ended up deciding to finance since the lease rates are so high it's cheaper just to eat the sales tax difference vs. the finance charge.

edition1

What do you think the depreciation will be on this car? Trying to decide whether buying or leasing makes sense, since I am paying sticker on my Edition 1. Btw, I am in the Bay Area too.

LKTB_E63

I was quoted a residual of 57% with 12K miles. Money factor was about 0.0223 on 36 month lease and only slightly lower on a one-pay lease.

For a $115K MSRP car, dealer wouldn't take anything off (even though I think 3-5% is doable if you call around). I think total payments came out to about $67K..payment was about $1,600-$1,700.

Audiodog

If you make a refundable multiple security deposit of 10 monthly payments, your factor drops to .0016 and the payments drop about 200 a month! A must do.... You rate of return on the deposit is about 12% compounded and is AAA and tax free.

E63guy

$124k wagon including the 3 year maintenance package, $0 cap cost reduction, 36 months, 10K mi/year lease: selling price of $118k ($6k off), $1799/mo, or $1666/mo with 10 MSDs. 59% residual value. I didn't get the MF but you could back into it with my numbers. I can tell at a glance it's "high" but overall I get that there's only so much you can expect for a car like this. I'm happy enough overall.

Audiodog

I would double check with the dealer. We are friendly with the owner at my dealer and my numbers quoted are honest as far as items like money factor, In my case, my sedan was 120,350, discounted 10350 to 110,000. Add on NJ sales tax and we get 118843. Very similar to you. My payment was quoted at 1775 a month, again almost exactly like you. Ten MSDs however, reduce the MF to .0016 and my payment drops 197 a month to 1575. This is the honest effect. Maybe your dealer jacked your MF and kept half of your savings!! I don't think the MSD program cares what car you buy. I think the dealer may be screwing you.

Quickburn7

I have never done multiple MSD on a lease before however let’s say worst case scenario and the car gets totalled in a year. Are the MSD refundable to you?

Quickburn7

Do those payments include sales tax? The $6k off is amazing as most dealers here in California, Nevada and Arizona won’t give a penny off MSRP.

Audiodog

I was impressed with my dealer discount! I am in NJ.

Maybe E63Guy lives in a state with no tax! My quote includes tax and nothing down. I also have no clue as to the MSD refundability in a total. My guess it is or it is moot since if you owe them, you owe them. I'll look into it.

simarddominic

I always bought my cars. I do not care too much about renting.

Since I do little mileage and change my vehicle at 3 or 4 years of age, renting seems to be my best option.

I understand all the concepts except the "money factor"

Can you explain to me ?

Gotic4u

I live in Canada Montreal and I got 4k discount on the E63 lease with 5.9% interest and first year maintenance free.

I am trying to ask for the winter tires. Haha.

Blue63s

Here is my lease breakdown

144k + discount
4.9% rate as I get a loyalty discount being I have another amg car
40k down
998.00 payment.. Give or take a few bucks

Asteroid

Interest rate = MF * 2400

Gotic4u

how much discount were you able to get?

Quickburn7

I lease about 6 cars a year on average and never understood putting more than just the drive off down. What is the reasoning for putting a large chunk down and not financing?
The risk of having the car stolen/ totalled and losing all that cash was just too high let alone what else you can do with that money?

E634Me

Like you, I've always bought my cars, either cash or financed. My jeep was 0% for five years, couldn't say no to that!

The simplest explanation is that the MF is the APR / 2400. So a 6% APR is a MF of 0.0025.

A more involved derivation can be found here: http://mathscinotes.com/2011/03/magi...-auto-leasing/

A simpler approximation of all that math can be found here: https://money.stackexchange.com/ques...-the-way-it-is

The above also give examples of how the various elements of the deal and the MF get used to calculate the lease payment.

E63guy

I will ask about the MF buy down as I agree I thought the "after" monthly payment would be somewhat lower. My payments do *not* include tax as I abhor the idea of paying interest - regardless of rate - on taxes. So, I pay my taxes up front. My drive off excluding MSDs is about $8500 or which $4900 is tax (NYS) and $1800 is the first month's payment. The other $1800 are various fees.

stealth.pilot

While I agree it is better to do zero down when leasing, the risk can be managed depending on what kind of insurance you buy.

Quickburn7

What kind of insurance would cover that? There is GAP insurance here in Cali but that only covers the difference between the value of the car at the time of loss and your payoff. You would still be out the money you put down as a cap reduction. I’m only asking because if I can find a way to limit the risk then I will put more down.

Thanks for the advice!

Verb04

Sticker was 118.5K (NO discount)
39 Months
7,500 Miles per year
$4,400 (TOP)
$1,794 per month (6% Tax included)

Audiodog

Why not do the 10 security deposits? So much better than a 40K cap paydown. You lower the MF from .0023 to .0016! It is refundable. Then you can put the balance in as a cap paydown. I am in the biz. This is the only choice if you have free cash on hand.

Audiodog

An 18K refundable deposit will lower your payments by about 195 a month. A must do.

v8plus4

How do you calculate this? I.E. how much does each security deposit reduce the MF?

Audiodog

I believe by .00007 per deposit